Supermax's 4Q earnings surge nearly 30 times to RM44m

KUALA LUMPUR: Supermax Corp Bhd reported a strong set of earnings in its fourth quarter ended Dec 31, 2009, with net profit surging nearly 30 times to RM44.11 million from only RM1.48 million a year ago as it benefitted from higher margins for its rubber gloves and contributions from its associates.

It said on Friday, Feb 19 that revenue rose 7.4% to RM196.42 million from RM182.82 million a year ago. Earnings per share were 16.55 sen versus 0.56 sen. It proposed a tax exempt final dividend of 8% per share of 50 sen for FY09 and special tax exempt dividend of 9%.

Supermax said revenue benefited from strong global demand, increased output from refurbished lines and higher prices commanded for rubber gloves sold.

Challenging times for condominium segment

A must read article for those contemplating property investment.

By THEAN LEE CHENG leecheng@thestar.com.my

http://biz.thestar.com.my/news/story.asp?file=/2010/2/13/business/5662557&sec=business

DiGi to pay 138% of net profit as dividend

SHAH ALAM: DiGi.Com Bhd said it will pay out 138% of its 2009 net profit as dividends after posting a full-year earnings that were in line with analysts’ expectations but which showed the effects of last year’s economic slowdown.
The full-year dividend payout, at RM1.78 per share and totalling RM1.38bil, is DiGi.Com’s largest in terms of proportion to its net profits and gives its shares a dividend yield of 8% based on yesterday’s closing price of RM21.10 per share.

DiGi used its strong cashflows and raised a little more debt to pay out its dividends. It is likely to maintain, if not increase, its dividend payments in 2010.
Johan Dennelind, chief executive officer of DiGi, explained: “It is no secret. We are gearing up to pay more dividends. We hope to reach the optimal use of our balance sheet and debt to equity level this year to maintain our yield story. We are not there yet.”

DiGi also enjoyed an increase its operational cashflows – essentially derived from its earnings before interest, tax, depreciation and amortisation (EBITDA) minus capital expenditures and which provides a good indication of cash available for dividend payments – to RM1.4bil for 2009 compared with RM1.27bil previously.